What to do about bounced payroll checks?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What to do about bounced payroll checks?
I have a family member that is working for a buisness that has been bouncing the payroll checks for the last 2 months or longer. The owner is taking cash out of the till to go buy hooker and drugs. He does this regularly. In fact he has taken $1500 cash from a customer for work that was done on their car and pocketed it. I am at a loss. He did make good with the past checks but one of the employees has tried to cash his check at the bank it was from. He tried and the account as empty.
Asked on July 4, 2012 under Employment Labor Law, Utah
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
If a payroll check bounces, the employee could sue the employer for the money he/she is owed plus any charges, fees, or costs he/she incurred due to the bounced check--e.g. a dishonored check fee, an overdraft protection fee, etc. However, if the check is later made good, the employee cannot sue for the value of the check--only for the additional costs, since U.S. courts generally only provide compensation for actual losses or damage.
Based on what you write, your family member should look for different employment--situations like these tend to escalate, until the owner is arrested, the company shuts down, the owner disappears with the money, etc.--and if he or she is ever behind by more than one dishonored check, should probably consider suing (including possibly in small claims court, acting as his/her own attorney). In these situations, you want to take action sooner rather than later, since the money tends to disappear and be unavailable to recover over time.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.